The Insider

By Tony Bertuca
March 22, 2016 at 1:03 PM

The Special Inspector General for Afghanistan Reconstruction has notified Congress that a formal audit of the Defense Department's disbanded Task Force for Business and Stability Operations is officially underway.

Senate Judiciary Committee Chairman Chuck Grassley (R-IA) was notified of the audit by SIGAR in a March 21 letter, according to statement from Grassley's office.

"Grassley requested a formal, comprehensive audit after the watchdog, the Special Inspector General for Afghanistan Reconstruction (SIGAR), documented numerous instances of excessive spending by the now-defunct task force and a shoddy record of projects," according to the statement.

The TFBSO made headlines last year when SIGAR alleged that it oversaw spending on a $43 million gas station and luxury villas.

Meanwhile, SIGAR is conducting one TFBSO audit to assess "internal controls, compliance, corrective actions taken on prior findings and recommendations, and outstanding liabilities," and one that "will assess the strategy, planning, interagency coordination, oversight, and outcomes" of the task force's activities in Afghanistan.

"These audits are necessary," Grassley said in the statement. "Someone needs to document whether the task force has the receipts and records to support its spending. Otherwise, the American taxpayers have no way of knowing whether they got what they paid for or whether there was outright fraud or theft."

A final report is expected from SIGAR early next year.

By Marjorie Censer
March 22, 2016 at 11:40 AM

(This regular feature highlights protests decided by the Government Accountability Office.)

Agency: U.S. Transportation Command

Awardee: United Airlines

Protester: National Air Cargo Group

What GAO found: National Air Cargo Group protested the award of a TRANSCOM contact for international commercial transportation services to United, arguing the deal violated the terms of the solicitation, according to GAO.

In June of last year, TRANSCOM awarded five companies, including National Air Cargo Group, the indefinite-delivery, indefinite-quantity contracts. In July, it added a sixth awardee in United, the report says.

GAO dismissed the protest, and National Air Cargo Group went to the U.S. Court of Federal Claims. That protest was dismissed by the court after TRANSCOM said it would reevaluate the past performance of all offerors and make a new award decision. In January, the agency affirmed all of the contract awards, according to the latest GAO report.

National Air Cargo Group protested again, arguing the award was improper and TRANSCOM's evaluation of United's past performance was unreasonable.

The agency contended the protest should be dismissed because National Air Cargo Group "is not an interested party to pursue the protest." National Air Cargo Group disagreed, contending its direct economic interest would be hurt by United's award because it would reduce the amount of work available to it, the GAO report says.

GAO agreed with the agency and dismissed the protest.

Read the decision: http://www.gao.gov/assets/680/675863.pdf

By John Liang
March 22, 2016 at 10:57 AM

The Army announced today the implementation of a new "Associated Units" pilot program that establishes formal relationships between identified units across the active-duty Army, Reserve and National Guard that would allow those units to train together before deployment.

"Much of America's Army's capacity is resident in the Reserve Components and we must rely more heavily on them to meet the demands of a complex global environment," Army Chief of Staff Gen. Mark Milley said in a statement, adding: "The Associated Units pilot allows us to leverage the capabilities and capacities of the Active Component, Army Reserve and the Army National Guard as One Army."

Army Reserve chief Lt. Gen. Jeffrey Talley said in the same statement that the new pilot program "facilitates readiness and strategic depth across components. These units will train, build readiness, and ultimately fight as One Army."

Georgia-based units will be the first ones to set up the pilot effort, beginning this summer, according to the statement.

Task Force 1-28 Infantry, an active-duty Army infantry battalion stationed at Ft. Benning, GA, will be associated with the 48th Infantry Brigade Combat Team, a Georgia Army National Guard unit. Additionally, the 48th Infantry Brigade will be associated with the active-duty 3rd Infantry Division, stationed at Ft. Stewart.

Army National Guard Director Lt. Gen. Timothy Kadavy said the soldiers of Task Force 1-28 and the soldiers of the Georgia Army National Guard's 48th Infantry Brigade would wear the 3rd Infantry Division's patch.

"This brigade will train and, if called to do so, deploy and fight with the 3rd Infantry Division as an Associated Unit," Kadavy said. "These units will develop relationships and standards in home station so they may fight together in combat without having to meet on the battlefield and figure these things out."

In addition to the Georgia-based units, the following additional units will be associated under the Associated Units pilot this summer, according to the statement:

*  The 1st Battalion, 143 Infantry Regiment from the Texas Army National Guard will be associated to the 173rd Airborne Brigade Combat Team stationed in Vicenza, Italy;

*  The 1st Battalion, 151 Infantry Regiment from the Indiana Army National Guard will be associated to the 2nd Brigade Combat Team, 25th Infantry Division stationed in Schofield Barracks, Hawaii;

*  The Hawaii-based 100th Battalion, 442 Infantry Regiment, U.S. Army Reserve, will be associated with the 3rd Brigade Combat Team, 25th Infantry Division stationed in Schofield Barracks, Hawaii;

*  The 81st Armored Brigade Combat Team, Washington Army National Guard, will be associated with the 7th Infantry Division stationed in Joint Base Lewis-McChord, Washington;

*  The 3rd Brigade Combat Team, 10th Mountain Division, stationed in Fort Polk, Louisiana, will be associated with the Texas Army National Guard's 36th Infantry Division;

*  The 86th Infantry Brigade Combat Team from the Vermont Army National Guard will be associated with the 10th Mountain Division, stationed in Fort Drum, New York;

*  The North Carolina-based 824th Quartermaster Company, U.S. Army Reserve, will be associated with the 82nd Sustainment Brigade, stationed in Fort Bragg, North Carolina;

*  The 249th Transportation Company, Texas Army National Guard, and the 1245th Transportation Company, Oklahoma Army National Guard, will be associated with the 1st Cavalry Division Sustainment Brigade, stationed in Fort Hood, Texas;

*  The 840th Engineer Company, Texas Army National Guard, will be associated with the 36th Engineer Brigade, stationed in Fort Hood, Texas;

*  The 1176th Transportation Company, Tennessee Army National Guard and the 2123rd Transportation Company, Kentucky Army National Guard, will be associated with the 101st Sustainment Brigade, stationed in Fort Campbell, Kentucky; and

*  The 5th Engineer Battalion, stationed in Fort Leonard Wood, Missouri, will be associated with the 35th Engineer Brigade from the Missouri Army National Guard.

By John Liang
March 21, 2016 at 1:01 PM

Unfunded priorities, a space launch controversy and more highlight this Monday INSIDER Daily Digest.

Don't expect Defense Secretary Ash Carter to endorse the services' unfunded prioities lists anytime soon:

Carter warns Congress of 'ripple effects' from unfunded priorities lists

Defense Secretary Ash Carter is warning Congress against "ripple effects" that would be caused by inserting additional acquisition programs into the Pentagon's fiscal year 2017 budget, despite the fact the military services recently identified $22.6 billion in "unfunded priorities," according to a memo obtained by Inside Defense.

Document: Carter memo to Congress on unfunded priorities

Comments made by a since-resigned ULA executive regarding the EELV competition have spawned a DOD IG review:

Pentagon inspector general 'reviewing the matter' after ex-ULA exec's statements

The Defense Department's inspector general is "reviewing" a request from Defense Secretary Ash Carter to determine "appropriate action" in light of comments made by a former United Launch Alliance executive implying DOD had somehow shown favoritism to ULA over its competitor SpaceX.

ICYMI: McCain wants Carter to investigate 'disturbing comments' from ULA exec

The Navy will need to buy more munitions soon:

Official: Navy weapons inventory needs to be examined by 2018

The Navy is facing a weapons shortfall, initially sparked by a decision to maintain high-end capability project funding levels in the face of a declining defense budget and further exacerbated by the campaign against the Islamic State of Iraq and the Levant, according to a service official and budget documents.

Keep an eye out for a new Army strategy aimed at making the service's helos more lethal:

New lethality strategy approved for Army helicopter weaponry

Senior Army leaders have approved a new strategy for making helicopter-fired weapons more accurate and deadly, according to the head of the service's aviation branch.

Don't expect everyone to agree with the Air Force's efforts to limit the amount of information it releases about the Long-Range Strike Bomber:

Lawmakers, analysts skeptical of Air Force's lack of B-21 cost disclosure

As the Air Force continues to develop a security plan for information related to the B-21 Long-Range Strike Bomber, some lawmakers and defense analysts are skeptical of the service's claims that releasing the B-21 contract value could cause potential adversaries to learn key information about the highly veiled system's capabilities.

Lockheed Martin wants the Air Force to tell the company about the service's plans for its next-generation aircraft:

Lockheed Martin seeking more insight into fifth-generation upgrade plans

As Lockheed Martin's advanced research and technology arm works with the Air Force to help identify sixth-generation capabilities, the company is also seeking direction on the service's plans for long-term modernization of its fifth-generation fleets.

By Tony Bertuca
March 21, 2016 at 10:59 AM

Defense Secretary Ash Carter heads to Capitol Hill this week to justify the Pentagon's fiscal year 2017 budget request, while members of Congress are scheduled to receive an update on the most expensive program in Defense Department history -- the F-35 Joint Strike Fighter.

Tuesday

The House Armed Services Committee will hear from Carter, Chairman of the Joint Chiefs of Staff Gen. Joseph Dunford and Pentagon Comptroller Mike McCord on the FY-17 budget. Link: http://1.usa.gov/21Dh7Vr

The House Appropriations defense subcommittee will hear from guard and reserve officials on the FY-17 budget. Link: http://1.usa.gov/1Rw5Mk4

The House Armed Services seapower and projections subcommittee will hear from U.S. Transportation Command officials on logistics and sealift force requirements. Link: http://1.usa.gov/21Dh7Vr

The House Armed Services emerging threats and capabilities subcommittee will hear from the Defense Department's chief information officer and deputy chief management officer on information technology and cyber programs. Link: http://1.usa.gov/21Dh7Vr

Wednesday

The House Armed Service tactical air and land forces subcommittee will receive an update on the F-35 Joint Strike Fighter program. Link: http://1.usa.gov/21Dh7Vr

By Marjorie Censer
March 21, 2016 at 10:24 AM

After reorganizing as part of the divestiture of its IT services business, Lockheed Martin has integrated its remaining cybersecurity work into its mission systems and training business, according to a company executive.

Deon Viergutz, Lockheed's vice president of cyber solutions, told Inside Defense during an interview last week that the contractor completed the reorganization last year. Lockheed's commercial cyber work is part of the business being merged with Leidos, but Lockheed retained all of its government-focused cybersecurity business.

Now, that work is part of MST and, as a result, is more closely linked with the products Lockheed builds, he said.

“We're much closer to our platforms and our systems,” Viergutz said.

Viergutz added that the new home is helping ensure cybersecurity is baked into the company's programs. Those conversations, he said, are happening earlier than before.

By Marjorie Censer
March 21, 2016 at 10:00 AM

PAE said today Ken Myers, former director of the Defense Threat Reduction Agency and U.S. Strategic Command's Center for Combating Weapons of Mass Destruction, has been named president of its national security solutions unit, effective today.

Before spending nearly seven years at DTRA, Myers was a senior professional staff member on the Senate Committee on Foreign Relations and a senior legislative assistant for national security in the office of former Sen. Richard Lugar (R-IN).

Myers will oversee the 3,000-employee national security solutions business, which specializes in identity management services, forensic and biometric operations and analysis and comprehensive training.

By Sebastian Sprenger
March 21, 2016 at 9:05 AM

Some must-reads from this week's edition of Inside the Army:

1. Senior Army leaders have approved a new strategy for making helicopter-fired weapons more accurate and deadly, according to the head of the service's aviation branch.

Full story: New lethality strategy approved for Army helicopter weaponry

2. The Army aims to tackle eight key capabilities in the mid to far term, according to the deputy director of the Army Capabilities Integration Center at Army Training and Doctrine Command.

Full story: Army looks to tackle 'Big 8' initiatives

3. Army Vice Chief of Staff Gen. Daniel Allyn told senators last week he would support a review of Obama administration plans to reduce his service's end strength to 450,000 active-duty soldiers.

Full story: Army vice chief questions drawdown plan, calls for 'strategic review'

4. The Goldwater-Nichols Act, a package of acquisition reforms passed three decades ago and currently under review by the Office of the Secretary of Defense and the leaders of the House and Senate Armed Services committees, has made the Army "a very burdened organization," according to the service's acting acquisition executive.

Full story: Army acquisition chief laments 'burden' of Goldwater-Nichols

By John Liang
March 21, 2016 at 9:00 AM

Some must-reads from this week's issue of Inside the Navy:

1. The Navy is facing a weapons shortfall, initially sparked by a decision to maintain high-end capability project funding levels in the face of a declining defense budget and further exacerbated by the campaign against the Islamic State of Iraq and the Levant, according to a service official and budget documents.

Full story: Official: Navy weapons inventory needs to be examined by 2018

2. The amount of fuel used by the relatively new class of Littoral Combat Ships could change the Navy's requirement for 17 fleet replacement oilers, according to a report to Congress.

Full story: Littoral Combat Ship fuel usage could change fleet oiler requirement

3. The Marine Corps Warfighting Laboratory's wargaming division is focusing on future force design and capability development, according to a service official.

Full story: Marine Corps war games focus on future force design, capabilities

4. The Marine Corps revealed last week that the requirement for the next iteration of the Amphibious Combat Vehicle, dubbed 1.2, will most likely include a 12 mile ship-to-shore threshold, according to a senior official. The new threshold is a significant increase over what had previously been discussed.

Full story: Marines reveal ACV 1.2 will have threshold requirement of 12 miles

By John Liang
March 18, 2016 at 4:30 PM

The Airbus Group announced today it had agreed to sell its Ulm, Germany-based defense electronics business to investment firm KKR for 1.1 billion Euros, or $1.2 billion.

"This is a significant step forward in the portfolio reorganization announced by the Airbus Defence and Space Division in September 2014," according to an Airbus statement. "The transaction is expected to close in the first quarter of next year and is subject to customary closing conditions, including regulatory approvals and employee consultation."

Airbus Defence and Space CEO Bernhard Gerwert said: "This is an excellent outcome for our Orlando process which aimed at repositioning Defence Electronics for the future with an excellent outcome for all stakeholders. Defence Electronics is a strong, profitable business with significant growth potential and we are convinced that KKR and the Defence Electronics management team and employees will continue to strongly develop the business going forward."

Airbus Group will maintain a minority stake in the unit "to ensure a smooth and seamless transition for the business, its employees and partners," according to the statement.

Johannes Huth, head of KKR Europe, Middle East and Africa, said: "We are delighted to have been chosen as the best partner for the defence electronics business. KKR will support the growth and development of the company with its financial resources, international network, long-standing expertise in the global industrial sector and its extensive experience building successful industrial companies in Germany, such as MTU Aero Engines, Demag Cranes and Kion."

The Defence Electronics business includes around 4,000 employees worldwide, with annual revenues of around 1 billion Euros, or $1.1 billion. 

By John Liang
March 18, 2016 at 2:34 PM

Airborne lasers, the Joint Strike Fighter and submarines highlight this Friday INSIDER Daily Digest.

Looks like there's a new iteration of the Airborne Laser concept floating around:

SOCOM seeks additional funding for airborne laser to be used in 'clandestine' strikes

U.S. Special Operations Command is asking Congress for additional funding in fiscal year 2017 to begin experimentation on an Airborne High Energy Laser intended for precision strikes during clandestine operations, according to an "unfunded requirements" memo obtained by Inside Defense.

Document: SOCOM's unfunded requirements list

Don't expect Lockheed Martin to drive down the price of the F-35 to its stated goal of $10 million per jet anytime soon:

Lockheed continues to drive down JSF price, far from $10M savings goal

Lockheed Martin continues to drive down the price of the Joint Strike Fighter by investing in smaller projects that yield large returns but the company is far from its goal to reduce the price by $10 million per jet, according to a company executive.

The head of Huntington Ingalls Industries talked submarines with Inside Defense this week:

Huntington Ingalls CEO 'really happy' with progress of Ohio Replacement Program

The Huntington Ingalls chief executive said this week he's pleased with the current status of the Ohio Replacement Program.

Huntington Ingalls 'working with the Navy' to boost submarine supply

Huntington Ingalls is working with the Navy on a plan to produce more submarines, the company's chief executive told Inside Defense this week.

Raytheon will be getting a sole-source Global Hawk sensor contract:

Air Force plans to sole-source Global Hawk sensor retrofits to Raytheon

The Air Force will sole-source sensor suite modifications for the Block 30 Global Hawk to Raytheon, according to a justification posted to Federal Business Opportunities on March 3.

Keep an eye out for questions from lawmakers regarding the cost of the Long-Range Strike Bomber:

Lawmakers, analysts skeptical of Air Force's lack of B-21 cost disclosure

As the Air Force continues to develop a security plan for information related to the B-21 Long-Range Strike Bomber, some lawmakers and defense analysts are skeptical of the service's claims that releasing the B-21 contract value could cause potential adversaries to learn key information about the highly veiled system's capabilities.

By Marjorie Censer
March 18, 2016 at 12:13 PM

Heidi Shyu, the former Army acquisition chief, was elected to the Aerospace Corp.'s board of trustees earlier this month.

Shyu was assistant secretary of the Army for acquisition, logistics and technology from September 2012 to January 2016. Before her Army role, she held several positions at Raytheon.

The 3,600-employee Aerospace Corp. is a California nonprofit that runs a federally funded research and development center.

The news was first reported by GovCon Executive.

By Marjorie Censer
March 18, 2016 at 12:03 PM

Mike Petters, chief executive of Huntington Ingalls, said this week that the Ford-class aircraft carrier lead ship is in the test phase and is expected to get to sea "in the middle of the year."

Inside the Navy reported last month that delivery of the Gerald R. Ford (CVN-78) could be delayed by up to three months.

"Ford is a ship that’s essentially built," he told Inside Defense this week. "We’re in the test phase now, testing all of the systems on the ship -- systems that we built, systems that were government-furnished. We’re testing the systems themselves, but then we’re testing how they interact with each other. This is the first chance that some of these systems have actually had the chance to work with each other.

"When you step back and think about the decisions that were made 10 to 15 years ago about all of the innovation that was going on, all of the new kinds of stuff that was going into this ship, we’re kind of ironing out those challenges," Petters continued.

He said the ship "now is on a path to get to sea, and it’s got to come through this test program to go to sea, and we expect that to happen in the middle of the year."

By Marjorie Censer
March 18, 2016 at 9:56 AM

Orbital ATK said today it will expand the company's engineering operations in Gilbert, AZ, by 60,000 square feet.

The project, the company said, will create 155 full-time jobs over a five-year period. The Gilbert site is home to Orbital ATK's satellite manufacturing facility.

By Tony Bertuca
March 18, 2016 at 8:51 AM

Defense Secretary Ash Carter has named new leadership for U.S. Northern Command and U.S. forces in South Korea.

Air Force Gen. Lori Robinson has been nominated to run NORTHCOM, the first woman nominated to lead a U.S. combatant command, while Army Gen. Vince Brooks has been nominated to take over all U.S. forces on the Korean Peninsula. Carter made the announcements at an event hosted by Politico.

Robinson is currently the chief of Pacific Air Forces, while Brooks is commander of the Army's forces in the Pacific.

Carter said if the nominees are confirmed, it will mean that he has named replacements for "every single senior four-star job" in the Defense Department.